Industryweek 27820 020718 German Factory Orders
Industryweek 27820 020718 German Factory Orders
Industryweek 27820 020718 German Factory Orders
Industryweek 27820 020718 German Factory Orders
Industryweek 27820 020718 German Factory Orders

German Industrial Output Slips as Economy Wraps Bumper Year

Feb. 7, 2018
Bolstered by strong domestic demand and surging trade worldwide, manufacturing has been driving Germany’s economic boom — and the upturn is set to continue in coming months after orders rose 3.8% in December.

German industrial production slipped in December after strong momentum throughout the year helped Europe’s largest economy expand at the fastest pace since 2011.

Factory output declined 0.6% from November, when it increased a revised 3.1%, the Economy Ministry said on Wednesday. The reading, which is typically volatile, compares with estimates for a 0.7% drop in a Bloomberg survey.

Bolstered by strong domestic demand and surging trade worldwide, manufacturing has been driving Germany’s economic boom. The upturn is set to continue in coming months after orders rose 3.8% in December, while a wage agreement between employers and the country’s largest union — representing some 3.9 million metalworkers and engineers — removes the risk of strikes and provides clarity on labor costs.

On Tuesday, IG Metall won a 4.3% pay increase over 27 months in a key state, plus additional one-time payments, and options to temporarily reduce working hours.

The Bundesbank says the German economy will maintain its drive. After growing 2.2% last year, gross domestic product is forecast to increase 2.5% in 2018. A gauge of manufacturing activity remained close to a record high at the start of the year.

“Industrial output was very dynamic in the course of 2017 but has lost some momentum lately,” the ministry said in a statement. “Nonetheless, production is clearly pointing upward, and in light of strong orders in December and good sentiment indicators, strong manufacturing momentum can be expected in the coming months.”

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!